PLANNING COMMISSION REPORT SUMMARY Public Hearing Item – Regular Agenda
PC Staff Report 05/22/06
ITEM NO. 11A:	ZONING OVERLAY DISTRICT; BETWEEN 8^TH & 9^TH STREETS AND NEW JERSEY & DELAWARE STREETS 8^TH & PENNSYLVANIA (LBZ)
Z-12-80-05: Establishment of a Zoning Overlay District for the 8^th and Penn Neighborhood Redevelopment Zone.  The property is generally described as being located between 8th & 9th Streets and New Jersey and Delaware Streets.  Submitted by BNIM Architects for Cinco Hombres, LLC & Pennsylvania Street Investors, LLC, property owners of record.  Initiated by the Historic Resources Commission.
STAFF RECOMMENDATION: Planning Staff recommends approval of the proposed zoning urban conservation overlay district and forwarding the application to the City Commission with a recommendation for approval based upon the findings of fact presented in the body of the staff report. Planning Staff also recommends the approval of the proposed Design Guidelines and proposed boundaries for the overlay district as presented in the report from the Historic Resources Commission (Attachment B) and forwarding it to the City Commission subject to the following conditions: 1. The Design Guidelines document shall be modified to contain the appropriate minimums, maximums, landscaping and parking requirements. 2. The Design Guidelines shall include information on the future development process.

Reason for Request:	Approval of this request will allow for the redevelopment of this existing industrial area to a mixed-use commercial, residential, and office area.
KEY POINT · The proposed Urban Conservation Overlay District and Design Guidelines supercede lot area, setback, and other standards for the underlying zoning districts. · The Urban Conservation Overlay District and associated Design Guidelines should reduce the need for zoning variances. · The 8^th and Penn. Neighborhood Redevelopment Zone includes parcels to the north of 8^th Street and additional parcels along the western side of Pennsylvania Street. These areas will need to be rezoned and platted as necessary prior to site plan submission for development or redevelopment as part of the Mixed-Use Redevelopment Center. One lot to the east of Delaware Street currently includes an industrial building which will retain its industrial zoning. · Site plan and Historic Resources Review applications will need to be submitted for review and approval with redevelopment or development of each lot. Site plans must meet seven findings, including compatibility with adjacent land uses and efficiency of traffic flow. Historic Resources Review applications must meet the Secretary of the Interior’s Guidelines and/or the Standards and Guidelines for Evaluating the Effect of Projects on Environs. · The proposed Urban Conservation Overlay District with associated design guidelines meets the intent of Horizon 2020 and the East Lawrence Revitalization and Neighborhood plans. · There are typographical errors in the Design Guidelines 8^th and Penn Neighborhood Redevelopment Zone that should be corrected.
GOLDEN FACTORS TO CONSIDER CHARACTER OF THE AREA · The East Lawrence Neighborhood has historically and continues to be a mixed use area. CONFORMANCE WITH THE COMPREHENSIVE PLAN · The proposed request conforms with Horizon 2020, the East Lawrence Neighborhood Revitalization Plan, and the East Lawrence Neighborhood Plan. · A proposed text amendment to Chapter 6 of Horizon 2020 accompanies the Urban Conservation Overlay District request. The amended version of Chapter 6 will allow for a Mixed-Use Redevelopment Center. Once the amendment is approved, the rezoning of this area from the M-2 and M-3 Districts to the C-5 District for the purpose of mixed-use development will be consistent with Horizon 2020. · The Future Land Use Map anticipates office research/industrial/warehouse/distribution for the area.
ASSOCIATED CASES/OTHER ACTION REQUIRED · PP-01-04-06: 8^th & PA Neighborhood Redevelopment Preliminary Plat. · PF-01-03-06: 8^th & PA Neighborhood Redevelopment Final Plat. · CPA-2005-05: Amendment to Horizon 2020, Chapter 6 to address mixed use development in redevelopment areas. · Z-01-01-06: A request to rezone a tract of land approximately 0.541 acre from M-2 (General Industrial) District to C-5 (Limited Commercial) District, and 4.0 acres from M-3 (Intensive Industrial) District to C-5 (Limited Commercial) District. · Historic Resources Commission (HRC) initiated the Urban Conservation Overlay District on November 17, 2005. The HRC approved the Urban Conservation Overlay District on December 15, 2005, and the associated Design Guidelines on February 23, 2006. · The block bounded by 8^th, Pennsylvania, 9^th and Delaware has been listed on the Register of Kansas Historic Places and has been nominated by the Kansas Historic Sites Board of Review for inclusion in the National Register of Historic Places. The National Park Service will determine the National Register status. · City Commission approval is required. The rezoning ordinance for the urban conservation overlay district and the design guidelines ordinance will be placed on a City Commission agenda twice and published in a local newspaper.
PUBLIC COMMENT RECEIVED PRIOR TO PRINTING Several East Lawrence residents have expressed concern about the residential density along the western side of Pennsylvania Street and traffic generated in the alleyway.

GENERAL INFORMATION
Current Zoning and Land Use:	M-2 (General Industrial) and M-3 (Intensive Industrial) Districts; office, residential, and industrial uses. [C-5 zoning is being considered for a portion of the overlay area.]
Surrounding Zoning and Land Use (for this request):	M-2 (General Industrial) and M-3 (Intensive Industrial) Districts to the north; vacant land and offices. M-2 (General Industrial) District and RS-2 (Single Family Residence) to the south; drinking establishment, bus storage, and single family residence. M-2 (General Industrial) and M-3 (Intensive Industrial) Districts to the east; industrial uses and rail lines. M-2 (General Industrial) and RM-2 (Multiple-family Residence) Districts to the west; duplex and single family residences and offices.

I. ZONING AND USES OF PROPERTY NEARBY

Staff Finding – The area included in the zoning overlay district is surrounded by the RM-2 (Multiple-family Residence), RS-2 (Single Family Residence), M-2 (General Industrial), and M-3 (Intensive Industrial) Districts. Multi-family, single family, office and industrial uses border the subject area.

II. CHARACTER OF THE AREA

Staff Finding – The subject property is located in the East Lawrence neighborhood, between 8^th and 9^th and New Jersey and Delaware Streets. The area is characterized by a mix of residential and industrial uses.

III. SUITABILITY OF SUBJECT PROPERTY FOR THE USES TO WHICH IT HAS BEEN RESTRICTED

The subject properties included in the overlay district are currently zoned for general and intensive industrial use. The minimum lot area for M-3 properties is 20,000 square feet. According to the city’s Zoning Regulations, the M-3 District “…is designed to accommodate the manufacturing and industrial activities which involve more objectionable influences and hazards.” The majority of the parcels located in the existing M-3 district do not meet the minimum lot area for M-3 properties. The M-2 (General Industrial) District requires a minimum lot area of 5,000 square feet. The city’s Zoning Regulations state, “This district is designed to accommodate a wide range of manufacturing, wholesaling, warehousing, and other industrial activities of medium intensity. The M-2 District regulations are intended to permit such activities, subject to limitations, that will protect nearby residential and commercial districts and will insure that permitted uses are compatible with one another.”

The applicant proposes an Urban Conservation Overlay District with design guidelines that will allow for the redevelopment of the area utilizing the existing historic structures. The adaptive reuse and redevelopment proposal is in part supported by the change in historic industrial land use of smaller parcels to the need and desire of modern industrial uses for large parcels. The applicant proposes to rezone a portion of the M-2 and M-3 zoned property to the C-5 (Limited Commercial) District, which allows for a mix of multi-family residential, office, and commercial uses.

Applicant’s Response – “The area is no longer suitable for which it currently is restricted. The area is changing and will be revitalized with this proposed mixed-use development.”

Staff Finding – The subject area includes M-2 and M-3 District zoning and has always contained a mixture of uses. Rezoning of the area to the C-5 (Limited Commercial) District with an Urban Conservation Overlay District and associated design guidelines is necessary to allow for the adaptive reuse of the historic structures and the redevelopment of the area with a mix of uses, including multi-family residential, office and commercial uses. Additionally, the overlay district with base C-5 zoning results in a cohesive and less intensive zoning designation for the subject area, which abuts residences in the East Lawrence neighborhood. The proposed zoning overlay will foster compatible development and redevelopment in the subject area while allowing the continuation of mixed-use development. When there are conflicts between the design guidelines and the underlying base zoning district, the UC-O development/design standards will govern.

IV. LENGTH OF TIME SUBJECT PROPERTY HAS REMAINED VACANT AS ZONED

Staff Finding – The overlay district includes several buildings dating to the 1880s and 1900s. The area has included M-2 and M-3 zoning since the adoption of the 1966 Zoning Ordinance. The subject area includes vacant parcels and existing buildings which are occupied by industrial, residential, and office uses.

V. EXTENT TO WHICH REMOVAL OF RESTRICTIONS WILL DETRIMENTALLY AFFECT NEARBY PROPERTY

The proposed zoning overlay district will not change the existing uses permitted under the current zoning designations. However, in addition to the overlay district request, the applicant is requesting rezoning part of the area from an intensive industrial zoning district (M-3 District) and general industrial district (M-2 District) to a limited commercial district (C-5 District). The proposed rezoning request would result in a less intense zoning for the area and will allow for industrially zoned property to be redeveloped with a mix of uses that will serve the surrounding neighborhood and community. The proposed zoning overlay district will impose additional design regulation on the subject site but does not affect any nearby property.

Staff Finding – The Urban Conservation Overlay district in conjunction with the proposed rezoning request would result in a less intense zoning for the area. The rezoning request will allow for the historically industrial zoned property to be redeveloped with a mix of uses that will serve the surrounding neighborhood and community while utilizing the historic structures in the area. The associated design guidelines identify design standards that will encourage development that conforms to the size, orientation and setting of existing buildings in the area, reduce the need for zoning variances for development that conforms to the guidelines, foster redevelopment that is compatible with the scale and physical character of original buildings in the area, and conserve the cultural and historic resources in the area. The use of the design guidelines in conjunction with the conservation overlay district and the proposed C-5 zoning will not detrimentally affect nearby property.

VI. RELATIVE GAIN TO THE PUBLIC HEALTH, SAFETY AND WELFARE BY THE DESTRUCTION OF THE VALUE OF THE PETITIONER’S PROPERTY AS COMPARED TO THE HARDSHIP IMPOSED UPON THE INDIVIDUAL LANDOWNERS

Denial of the proposed zoning overlay district could place additional hardship on the individual property owners by requiring the need for variances from the current zoning code. Development patterns, such as setbacks, in the subject area are not reflected in the current zoning code. The individual property owners would need to seek variances to conform with existing development patterns. The adoption of the proposed overlay district would eliminate the need for certain variances within the subject area.

Approval of the proposed zoning overlay district will place additional zoning regulations regarding building form, design, and site placement on the subject area.

Staff Finding – With approval of the Urban Conservation Overlay District, design guidelines, and rezoning request, the applicant will be able to proceed with a mixed-use redevelopment project in an industrial area of the East Lawrence neighborhood. The gain to the public is redevelopment of underutilized industrial buildings to allow for a walkable, mixed-use area. Rezoning of property from the M-2 and M-3 Districts to the C-5 District results in a less intense zoning district for the area. The use of the design guidelines will encourage development that is sensitive to the overall character of the East Lawrence Neighborhood.

VII. CONFORMANCE WITH THE COMPREHENSIVE PLAN

Chapter Three of Horizon 2020 identifies the key features of the overall plan in an overview. The proposed 8^th and Penn Conservation Overlay District meets the intent of the following key features of the plan.

· The Plan supports infill development and redevelopment which provides a range of residential, commercial, office, industrial and public uses within these parcels, consistent and compatible with the established land use pattern in surrounding areas.

· The Plan encourages the development of neighborhoods in a range of densities to provide a sense of community and to complement and preserve natural features in the area.

· The Plan encourages the identification, protection and adaptive reuse of the wide diversity of historic buildings, structures, sites and archeological sites that can be found in Lawrence and Douglas County. Considering historic preservation issues in combination with other land use decisions assures the preservation of historic resources but also fosters the image, identity and economic development goals in the Plan.

Horizon 2020 does not currently address the type of mixed-use redevelopment of an historic area as proposed by the 8^th and Penn Urban Conservation Overlay District and associated design guidelines. Adaptive reuse of historic buildings is essential to the survival of significant historic structures that no longer have an associated modern use. Redevelopment and use of these structures is most often successful when a new use, such and office and residential uses, are introduced into the historic structure and combined with new development that is sensitive to the historic character of the area. For this reason, a text amendment to Chapter 6 of Horizon 2020 has been initiated to include Mixed-Use Redevelopment Centers.

Chapter 6 of Horizon 2020 does, however, “Encourage infill development and/or redevelopment of existing commercial areas with an emphasis on Downtown Lawrence and existing commercial gateways. Sensitivity in the form of site layout and design considerations shall be given to important architectural or historical elements in the review of development proposals." (page 6-1) The proposed Urban Conservation Overlay District and the associated design guidelines support this strategy.

In addition to conformance with the overall objectives of Horizon 2020, the proposed UC-O will help to achieve the goals of the East Lawrence Neighborhood Revitalization Plan (adopted in 2000).

Action Strategies (page 1)

2. “Preserve and conserve existing physical neighborhood landmarks.”

3. “Protect and enhance neighborhood greenspace, streetscapes and other physical assets.”

6. “Protect and strengthen the viability of neighborhood businesses.”

“One of the main qualities that makes the East Lawrence Neighborhood unique among Lawrence’s neighborhoods is the variety of land uses contained within the neighborhood…” (page 3)

The East Lawrence Neighborhood Plan (adopted in 1979) identifies the importance of the single family residences in the neighborhood and promotes development and redevelopment that lessens the impact of high and medium intensity land uses on low density residential area. The plan also sets as a goal to provide diversified and convenient non-residential facilities while minimizing the impacts on residential areas. (Chapter 2) While the proposed UC-O does not include single family residences, it attempts to cluster the high density residential, commercial, office and industrial uses into a cohesive design regulated area to minimize the impact on the overall residential areas to the east and south.

Staff Finding – The proposed Urban Conservation Overlay District with the associated design guidelines meets the intent of the goals and policies of Horizon 2020. Specifically, the overlay will support infill development and redevelopment which provides a range of residential, commercial, office, industrial and public uses that is consistent and compatible with the established land use pattern in the surrounding areas; includes a range of densities to provide a sense of community and to complement and preserve natural and historic features in the area; and identifies protection and adaptive reuse of the historic buildings, structures, and sites that exist in the area. This proposal takes into consideration historic preservation issues in combination with other land use issues to assure the preservation of historic resources to foster the image, identity and economic development goals of Horizon 2020.

Regarding the East Lawrence Neighborhood Revitalization Plan and East Lawrence Neighborhood Plan, the UC-O is in conformance with several recommendations of both plans. However, the East Lawrence Land Use Plan of 1979 recommends industrial and medium-density uses for the proposed project area. As this plan was adopted in 1979 without updates and was largely based on existing uses, staff supports a deviation from this plan. It is important to note that the rezoning request will allow for the area to be redeveloped with a mix of uses intended to create a viable, walkable center for the neighborhood and community.

DESIGN GUIDELINES FOR THE 8^TH AND PENN NEIGHBORHOOD REDEVELOPMENT ZONE

STAFF REVIEW

The majority of Design Guidelines 8^th and Penn Neighborhood Redevelopment Zone document addresses the existing conditions of the overlay area and establishes design standards for development and redevelopment. These design standards meet the intent of the Secretary of the Interior’s Standards and the Standards and Guidelines for Evaluating the Effect of Projects on Environs. A small portion of the document addresses specific items that are typically connected to the base zoning of a property. These items, including density, lot size, setbacks, and required parking were not reviewed for their appropriateness by the Historic Resources Commission.

The design guidelines identify that the residential density of the UC-O will not exceed thirty-two units per acre. This density was derived from the most intensive density anticipated by the project developer for the Poehler Building. C-5 zoning, which has been requested for an area of the overlay by the applicant, allows for 35 units per acre. Existing industrial zoning and C-4 do not allow residential use. The adjacent RM-2 area allows for 21.8 units per acre. Because of the varied zones in the area and the associated maximum densities, the proposed density of 32 units per acre appears appropriate for the UC-O. This will allow for a residential transition from no residential in the industrial district zoning to the existing RM-2 21.8 units per acre. Transition areas are supported by Horizon 2020.

The lot size and setbacks are defined in the design guidelines document based on the historic patterns of the area. Staff has some concerns about the lack of minimums and maximums listed in the proposed guidelines. No lot area is defined. Likewise, no rear or interior setbacks are established. Minimum lot width at the front building line is sixteen (16) feet. While staff is sympathetic to the needs of the proposed development and the historic nature of the area, a minimum and maximum lot size with appropriate setbacks should be established to aid in the development of the area.

Parking requirements for the UC-O appear to be minimal and not consistent with the existing and new development code. The guidelines identify one on- or off-street parking space for every one thousand square feet of floor area or one space for each 1.5 employees, which ever is larger for the office, retail, and commercial property. Parking for the industrial area is not addressed. Inner Neighborhood Commercial and Retail Stores typically have from one parking space per 100-500 square feet of floor area. The residential required parking is one space per unit. The proposed new development code calls for one space per bedroom. While the successful redevelopment of the area should not include large parking lots, staff has concerns about the amount of parking required and provided for in the preliminary design. Parking requirements should be more appropriate to the proposed uses of the area. In addition, the parking patterns identified in the guidelines need to be clarified to define residential uses from the alley and commercial uses from the public street.

Other concerns for staff in the design guidelines document include the space allowed for landscape buffers in parking areas (this is not reflective of needs identified by Parks and Recreation staff), new sidewalk placement and size (size is not proposed and should accommodate modern needs), and street tree plantings (also identified by Parks staff). It is also important to know that this review does not include comments from the Public Works Department or the Neighborhood Resources Department.

The design guidelines do not address the process for future review of projects. The overall concept for the Urban Conservation Overlay District for this area originally included the rezoning of a larger area to C-5 with only the area north of 8^th Street and east of Delaware maintaining industrial zoning. If the remainder of the west side of Pennsylvania Street develops, the guidelines should address the need for rezoning, platting or re-platting, site planning, and Historic Resources Commission review of each individual project as applicable.

SUMMARY

The Historic Resources Commission (HRC) held public hearings on the proposed zoning overlay on December 15, 2005, January 19, 2006, and February 23, 2006. The HRC has submitted a report containing:

1. an explanation of how the area meets the selection criteria for an urban conservation overlay district;

2. a description of the general pattern of development, including streets, lots and buildings in the area; district-specific development and design standards to guide redevelopment and development within the district;

3. a map showing the recommended boundaries of the UC-O district;

The Historic Resources Commission report has been provided (Attachment B) for Planning Commission review. The Historic Resources Commission recommended approval of the proposed overlay district and the associated design guidelines and has forwarded the request to the Planning Commission and City Commission for their review.

The Planning Commission is now responsible for holding a public hearing on the proposed Urban Conservation Overlay District. The Planning Commission must then make a recommendation to the City Commission. The Commission is responsible for providing an explanation of the planning and zoning implications (Golden Factors) related to the designation of the proposed area, and the related district-specific development and design standards recommended by the Historic Resources Commission. In addition, the Lawrence/Douglas County Planning Commission is responsible for reviewing the proposed district boundaries and making any recommended changes to the boundaries.